April 2023

Constitutional Council approves Macron’s controversial French pension reform

The Constitutional Court, the country’s highest authority on constitutional matters, on Friday handed down its ruling on whether the pension reform – which among other things raises the pension age from 62 to 64 – was constitutional. As there is no appeal against court decisions, a refusal would have been a crushing blow for Macron’s government – but the court announced on Friday evening that the major parts of the reform were approved. The court also rejected a request for a...

UK. TPR authorises first CDC pension scheme

The Pensions Regulator (TPR) has authorised the UK’s first collective defined contribution (CDC) pension scheme. CDC schemes provide an alternative to traditional defined benefit (DB) and defined contribution (DC) pension schemes and see member and employer contributions pooled in a collective fund from which an aspired to pension income for life is drawn. The pooling of longevity and investment risks makes CDC schemes more resilient to market shocks. Yesterday (April 13), the regulator published a list of authorised CDC schemes on its...

Why An Aging Population Might Not Doom The American Economy

The American economy is booming and robust. Just look at the chart below, which shows that the overall unemployment rate — the share of people within the labor force who are without work but are looking for it — is lower than it’s been in more than 50 years: But wait! Americans just don’t want to work like they used to. As you can see in the following chart, the labor force participation rate — the share of all Americans...

Dutch pension group warns proposal on derivatives could hurt pension funds’ returns

A Dutch pension federation, which represents pension funds with a combined a €1.4 trillion ($1.5 trillion) in assets warned that the latest European proposal on central clearing of derivatives could lead to lower investment returns. Under the latest proposal to amend the European Market Infrastructure Regulation, the European Commission wants market participants to have an active account with a central counterparty, or CCP, inside of the European Union and wants to define a minimum share of transactions that would have...

Swedish retirees demand fairer pensions for women

"Old ladies need more money!" a group of grey-haired women chants in front of Sweden's parliament, as their recurring protest against the country's pension system enters its 10th year. During the warmer months, members of the red-hatted "Tantpatrullen" (The Old Lady Patrol) gather every Thursday on the cobble streets of Stockholm's Old Town, right across from Sweden's parliament. They have just begun their 2023 protest season. In a country that prides itself on being a champion of feminism and gender equality,...

México. Reforma a las Afores debe ir de la mano del crecimiento del mercado de valores: Amafore

La reforma al sistema de pensiones necesita que el mercado de valores se desarrolle para beneficiar a los ahorradores mexicanos que tienen sus recursos depositados en las Administradoras de fondos para el retiro (Afores). Durante la próxima década, el monto de recursos que administran las Afores se duplicará gracias a que las aportaciones patronales irán en aumento año con año, de acuerdo con estimaciones de la Comisión Nacional del Sistema de Ahorro para el Retiro (Consar). “El dinero va a crecer...

Colombia. “A nombre del cambio, pensiones precarias”: sindicatos rechazan reforma de Petro

Las organizaciones sindicales han sido catalogadas como aliadas del Gobierno Petro. No solo por la prioridad en lo social que desde campaña propuso el hoy Ejecutivo sino porque a la cabeza del Ministerio del Trabajo, está una profesora y líder sindical: Gloria Inés Ramírez. Pues bien, ese panorama parece nublarse porque, aunque los sindicatos apoyaron ampliamente la reforma laboral que radicó el Gobierno el pasado 16 de marzo, ahora critican la reforma pensional, sosteniendo que “a nombre del cambio, pensiones...

Puerto Rico. Empleados jubilados y activos de la AEE llegan hasta sede de la JCF para defender sus pensiones

Miembros de la Alianza de Empleados Activos y Jubilados de la Autoridad de Energía Eléctrica (AEE) marcharon hoy, miércoles, frente a la sede de la Junta de Control Fiscal en la Milla de Oro, para reclamar la aprobación a la propuesta de beneficios definidos para garantizar el pago de las pensiones presentes y futuras en el Sistema de Retiro. El presidente de la Asociación de Empleados Jubilados de la AEE, Johnny Rodríguez Ortiz explicó que el último pago que van...

UK. Government body calls on London pension fund to divest fossil fuel holdings

Transport for London Pension Fund, London, should divest its holdings in fossil fuel companies and develop an annual report on performance against net-zero targets, according to calls by a London governmental body. The Greater London Authority committee, which oversees the London Pensions Fund Authority and TfL Pension Fund, launched an investigation as part of a review into its pension funds' investments and costs. The pension funds had about £22 billion ($27.1 billion) in combined assets as of March 31, 2022. In...

South Africa: Grandparents Spend Their Pensions to Feed Entire Families as Food Crisis Hits Hard in Eastern Cape

As Eastern Cape communities are hit by spiralling food inflation and unemployment rates of 42.4%, the province's elderly residents are using their state pensions to look after families in crisis and often have to rely on loans in the last weeks of the month. In Mthatha in the Eastern Cape, pensioners are selling scrap metal for food as whole families rely on their grants to survive and the cost of food often leaves their cupboards bare before the end of...